Neither One Conferred A Fee Entitlement Basis To Defendants, Requiring Reversal Of Fee Award.
In Judicial Council of California v. Jacobs Facilities, Inc., Case Nos. A140890/A141393 (1st Dist., Div. 1 Aug. 20, 2015) (partially published; fee discussion not published), defendants were awarded contractual attorney’s fees under an indemnity provision and a guaranty. That ruling had to be overturned given that they were no longer prevailing parties based upon a reversal by the appellate court. However, the reviewing court put the kibosh on fee entitlement altogether, determining (1) the indemnity clause was a true third-party indemnity clause which should not be transformed into a fee-shifting clause, and (2) the guaranty could not confer an independent right to fees where the underlying contractual obligation had no fees clause applicable to the “base” contract.
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